Green Markets - July 22, 2024

Jul 22, 2024

Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.

At its 39th Board Meeting, the Green Climate Fund (GCF) approved $1 billion for 17 new climate projects across 35 developing countries. This approval expands GCF’s portfolio to 270 projects, totaling $58.7 billion. New country partners include Albania, Tajikistan, Nigeria, and Côte d'Ivoire.
The EPA has awarded $4.3 billion in grants across 30 states to reduce climate pollution, funded by the Inflation Reduction Act. Key projects include:
- $396 million for industrial emissions reduction in Pennsylvania
- $500 million for decarbonizing transportation at the ports of Los Angeles and Long Beach
- $307 million for climate-smart agriculture and energy efficiency in Nebraska.

Shell has chosen KBR's advanced blue ammonia technology for its Blue Horizons project in Duqm, Oman, set to produce low-carbon hydrogen and ammonia. The facility will utilize KBR's technology to produce 3,000 metric tons of ammonia per day.
Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture between Saudi Aramco and TotalEnergies, has signed a 20-year agreement with Chemanol. Starting in 2027, Chemanol will supply 100,000 metric tons of methanol annually to SATORP's Amiral project.

Phlair has unveiled Electra 01, a new direct air capture (DAC) plant set to start operations in 2025. Using its patented Hydrolyzer technology, Electra 01 will capture hundreds of tons of CO2 annually, operating solely on renewable electricity and common salt dissolved in water. In partnership with Paebbl, Phlair will convert the captured CO2 into materials for the construction industry.

Tokio Marine Kiln (TMK) has teamed up with Kita, a carbon insurance provider, to offer new political risk insurance for carbon credit projects. This insurance is designed to protect developers and investors from risks such as expropriation, governmental takeover, and political unrest. The partnership aims to enhance the feasibility of these projects by providing essential risk coverage and fostering confidence in the voluntary carbon markets.

Porsche has tempered its previously ambitious electric vehicle (EV) sales goals, now stating that its aim to achieve 80% all-electric sales by 2030 is contingent upon customer demand and advancements in the sector. This shift reflects a broader industry trend, as automakers like Mercedes-Benz and Renault also acknowledge that the transition to fully electric vehicles may take longer than initially anticipated due to consumer hesitancy.

The Golden Pass LNG project, a $11 billion joint venture between QatarEnergy and Exxon Mobil in Texas, is poised to accelerate construction after a settlement agreement with its original main contractor. Zachry Holdings filed for Chapter 11 bankruptcy protection due to a $2.4 billion budget overrun on the project. The recently signed agreement allows Zachry to step aside, enabling Chiyoda International to take over as the lead contractor for engineering, procurement, and construction. Originally scheduled to produce its first LNG by the end of this year, but that timeline has been pushed back to 2025.
Mysterious buyers with suspected links to Russia have been rapidly acquiring liquefied natural gas (LNG) vessels, mostly through previously unknown companies registered in the United Arab Emirates, potentially expanding Moscow's "dark fleet" of energy tankers. This buying spree has driven up prices for older LNG vessels, reminiscent of how Moscow established a shadow fleet to circumvent Western oil sanctions. According to ship tracking data from Kpler, some of these newly acquired vessels are already being used for routes traditionally associated with Russian LNG exports.

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